Change in Canada
January 11, 2010 | industry, local issues | Comments (0)From the story:
Federal approval of the lending rate for Alberta’s payday loan industry could still be months away, but a new set of rules governing the industry have been in place since last fall.
Payday loans are like cash advances on one’s paycheque, unsecured and doled out without need for a credit check on the applicant. But high interest rates often entrap borrowers and lead to a cycle of temporary loans to pay off existing loans.
“The maximum cost of borrowing, 23 dollars per hundred, still has not been approved, but the rest became effective in September,” said Mike Berezowsky, assistant director of communications for Service Alberta.
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